Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Insperity Inc (NSP): Stadium Capital Keeps Selling, Plus Two New Picks

Page 1 of 2

Alexander M. Seaver’s Stadium Capital Management trimmed its stake in Insperity Inc (NYSE:NSP) yet again this month, selling off 288,400 shares in two separate transactions. After shedding 281,100 shares last week, the hedge fund reduced its holding by an additional 7,300 shares on Monday. Stadium Capital now owns around 1.57 million common shares, representing 6.2% of the company’s outstanding stock, according to a filing with the SEC. Moreover, the filing also showed that the fund changed the nature of its stake to passive from activist. In contrast, Mr. Seaver’s firm is bullish on Columbia Banking System Inc (NASDAQ:COLB) and Ubiquiti Networks Inc (NASDAQ:UBNT), which constitute its top new picks, according to its latest 13F filing.

Alexander Seaver Stadium Capital

Stadium Capital was founded by Alexander Medina Seaver in 1997 and currently has around $400 million in assets under management. The New Canaan, Connecticut-based hedge fund favors a research driven stock-picking approach, inspired by the principals of Benjamin Graham and Warren Buffett. Since Stadium Capital is an activist fund, it often seeks to engage with management in order to push for changes that will enhance shareholder value, and thus allow it to obtain favorable returns. The fund invests primarily in public equity markets, with more than 90% of its equity portfolio consisting of stocks from the Industrial and Consumer Discretionary sectors. According to its latest 13F filing, Mr. Seaver’s firm boasted an equity portfolio valued at $398.77 million, up from $315.25 million the previous quarter. At the end of 2014, the hedge fund’s top picks were represented by Builders FirstSource, Inc. (NASDAQ:BLDR), Insperity Inc (NYSE:NSP), and Ascena Retail Group Inc (NASDAQ:ASNA).

Throughout the first quarter of 2015, Stadium Capital has been gradually reducing its exposure to Insperity. Whereas the fund disclosed ownership of 2.43 million shares last quarter, its current stake in the company amounts to 1.57 million shares. The reduction to its holding was certainly well-timed, as the stock has gained around 90% over the past six months, allowing Mr. Seaver’s firm to obtain hefty returns. Stadium Capital previously stated concerns regarding Insperity Inc (NYSE:NSP)’s poor performance, suggesting measures to improve shareholder value in a letter sent to the company’s management last year. The measures proposed by the fund included appointing three new directors to the company’s board, to be nominated by Stadium Capital, as well as dividing the role of CEO and Chairman, and exploring strategic alternatives.

Considering the recent surge in the stock’s share price, the hedge fund was not wrong in its assessment regarding the stock’s potential. In addition to Stadium Capital, Jeffrey Smith’s Starboard Value LP also holds an activist stake in the company. In January, this hedge fund acquired 2.20 million shares, and now ranks as Insperity Inc (NYSE:NSP)’s largest shareholder among institutional investors, with a position of 3.35 million shares. Mr. Smith’s firm also believes the company to be undervalued and urged management to take a potential sale into consideration. In a letter sent to Insperity’s management, Starboard recommended reducing operating expenses and improving capital allocation, as well as making changes to corporate governance.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!